EPLY books a 16% decline in nine months net profit

Eppley Limited (EPLY) for the nine months ended September 30, 2017 recorded a 29% increase in interest income to $190.96 million, from $148.29 million booked in the previous year. While for the third quarter interest income amounted to $66.73 million relative to $55.85 million in 2016.

Interest Expenses amounted to $116.54 million, up 37% from $85.03 million for the corresponding period in 2016.

Consequently, net interest income rose 18% to $74.42 million, up from $63.26 million in the corresponding period of 2016. Net interest income for the quarter declined 13% to close at $24.08 million compared to $27.57 million reported in 2016.

Other operating income declined by 28% to total $39.48 million relative to $54.99 million in 2016. While administrative expenses increased by 11% to close at $63.14 million (2016: $56.95 million).

Share of net profit from joint venture accounted for using the equity method amounted to $833,000 relative to nil the year prior.

As such, pre-tax profit closed at $51.60 million for the nine months ended September 30, 2017, 16% less than the $61.29 million booked in 2016.  No taxes were incurred for the period and as such net profit attributable to shareholders amounted to $51.60 million, relative to net profit of $61.29 million in 2016. Third quarter net profit amounted to $21.05 million relative to $20.83 million in 2016.

Earnings per share for the nine months ended September 30, 2017 totalled $0.27 compared to $0.32 for the corresponding period in 2016, while earnings per share for the quarter amounted to $0.11 (2016: $0.11). The trailing twelve months EPS is $0.51. The total amount of shares outstanding used for this calculation was 1,283,122 units.


Balance Sheet Highlights:

As at September 30, 2017, total assets amounted to $2.46 billion, 45% more than last year’s $1.70 billion in 2016. The increase in the asset base was due mainly to ‘loans receivables’ and ‘cash and deposits’ which grew 30% and 284% respectively. ‘Loans receivables’ and ‘cash and deposits’ closed the period at $1.16 billion (2016: $890.47 million) and $392.15 million (2016: $102.05 million) respectively.

Shareholder’s Equity increased by 4% for nine months period, totalling $697.87 million compared to the previous year’s total of $672.41 million, this resulted in a book value per share of approximately $3.63 relative to $3.49 in 2016.



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